Allens advises Rio Tinto on US$2.69 billion Coal & Allied sale

By Richard Malcolmson
Energy Mergers & Acquisitions Resources

Allens has advised longstanding client Rio Tinto on its US$2.69 billion sale of Coal & Allied Industries to Yancoal Australia.

The transaction is the final in a series of thermal coal divestments by Rio Tinto in the Hunter Valley region of New South Wales.

Allens also advised Rio Tinto on the 2016 sales of its interests in the Bengalla mine and the Mount Pleasant thermal coal assets, together with the restructure of the ownership of Coal & Allied with Mitsubishi Development which helped enable these sales.

The sale price for Coal & Allied comprises US$2.45 billion in cash and a further US$240 million of unconditional guaranteed royalty payments. In addition, under the terms of the sale, Rio Tinto may receive additional royalties linked to the coal price, capped at US$410 million.

The multifaceted sale process traversed several jurisdictions and drew on Allens' expertise across a number of disciplines, including resources, mergers & acquisitions, head office & governance and competition, as well as the firm's a+ suite of alternative legal services.

The Allens team also worked closely with alliance partner Linklaters in relation to the corporate and shareholder approvals required in relation to the transaction, and competition and anti-trust matters.

'We are very pleased to have assisted Rio Tinto with this significant transaction and its other recent thermal coal divestments,' said Richard Malcolmson, lead partner on the deal from Allens.

'Together with our roles advising Rio Tinto on the sale of its interests in the Clermont coal mine and the Northparkes copper-gold mine, Allens has acted for the group on more than US$5 billion of divestments since 2013.

'We are very proud of our long history with Rio Tinto, and delighted to have assisted with the success of these substantial transactions.'

The sale of Coal & Allied builds on Allens' market-leading experience in resources. Over many years, the firm has advised on the most significant transactions in the minerals, gas and petroleum sectors, and advises on the full spectrum of legal issues in these sectors.

The Coal & Allied transaction completed on 1 September.


Allens legal team

Richard Malcolmson (Lead Partner), Richard Kriedemann (Partner), Ted Hill (Partner), Malcolm Stephens (Partner), Michael Ilott (Partner), Glenys Hodges (Special Counsel), Andrew Wong (Mergers & Acquisitions Counsel), Steven Local (Managing Associate), Tracey Davern (Senior Associate), Sophie Matthiesson (Associate), Melanie Hayden (Associate), Maggie Shelton (Lawyer), Isabel Burraston (Lawyer), Pavel Zorin (Applied Legal Technology Senior Consultant), Richard Tomat (Project Analyst)


Notes for editors.

Allens is a commercial law firm working throughout Australia and Asia. Through its integrated alliance with Linklaters it provides clients access to 40 offices in 28 countries around the world.